5G spectrum auction: Over 1.5 lakh crore in bids, increased interest in UP East

All of the additional spectrum sales on Sunday were made in UP East, which has more than 10 crore mobile subscribers.

The government earned an additional Rs 163 crore on Sunday as bids for 5G airwaves surpassed Rs 1.5 lakh crore on the sixth day of the spectrum auction. Auction was centered on the vital Uttar Pradesh East market, as the fight for the 1800 MHz band heated up there once more following a day of rest.

The bidding beginning with round 38, is scheduled to continue on Monday. The government had collected Rs 1,50,130 crore at the conclusion of Day 6.

In Uttar Pradesh's East circle, the cost of the 1800 MHz spectrum per unit increased to Rs 160.57 crore, which is now over 76.5 percent more expensive than the MHz's base cost of Rs 91 crore. In actuality, the price being paid for 1800 MHz in the circle at the ongoing auction is significantly higher the Rs 153 crore per MHz base cost in the auction that was held in March 2021.

According to analysts, the UP East circle, which accounts for 6.6 percent of the adjusted gross revenue (AGR), is the fourth-largest service region in terms of AGR. The service region also contributes a sizeable portion of gross revenues for each carriers, ranging from 7.6 percent for Jio to 8.4 percent for Airtel and 6.5 percent Vi.

As per the sources, the UP East circle, which covers Lucknow, Allahabad, Varanasi, Gorakhpur, and Kanpur saw bidding lift once more for 1800 MHz, a band that telecoms generally use for 4G services, on Sunday after a relatively softening of demand on Saturday.

All of the additional spectrum sales on Sunday were made in UP East, which has more than 10 crore mobile subscribers. This occured in the midst of a fierce competition for radiowaves between companies like Reliance Jio and Bharti Airtel.

Reliance Jio, Bharti Airtel and Vodafone Idea each have 3.29 crore, 3.7 crore and 2.02 crore respectively in UP East, as of May.

Telecom Minister Ashwini Vaishnaw had previously mentioned that the 5G auction emphasized that industry aims to expand, and had already accelerated the growth phase.

"The auction results are very good, close to Rs 1,49,966 crore has been committed by the industry for buying the spectrum," Vaishnaw had said at a briefing on Saturday.

Almost 71% of the spectrum put out for sale has been tentatively sold as of Friday. After a strong start on Tuesday, last week when competitors invested 1.45 lakh crore at the commencement, the numbers have gradually increased since Wednesday as participants like Jio and Airtel engaged in competitive bidding for the 1800 MHz band in the Uttar Pradesh East circle.

Low-band (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz,2300 MHz, and 2500 MHz), mid-band (3.3-3.67 GHz), and high-band (26 GHz) airways are attainable at the auction.